China Merchant Holdings (Pacific) downgraded to "hold" by CIMB

Stock Name: CMPacific
Company Name: CHINA MERCHANTS HLDGS(PACIFIC)

Research House: CIMB

Price Call: HOLD

Target Price: 1.16

SINGAPORE (May 4): CIMB has downgraded China Merchant Holdings (Pacific) to "hold" from "add", saying the stock is fully valued at its current price.

It has a price target of $1.16 on the stock.

The company's 1Q2015 core earnings of HK$134 million, up 4.6% y-o-y, were below expectations, weighed down by lower contributions from Guihuang Highway, its toll road business, according to CIMB analysts Roy Chen and William Tng.

Guihuang's toll revenue during the quarter was hurt by a drop in traffic volume, although earnings grew 10%, they noted.